Bell Potter's Super Lending product is designed to provide
gearing capabilities for Self Managed Superannuation Funds,
providing a flexible arrangement for gearing into securities
selected from our Approved
List
Super Lending is structured to provide multiple loan accounts
within the one client facility. There is a Cash Account to manage
initial cash collateral and items such as dividend payments. Each
loan account is secured by a separate parcel of shares purchased
from a single drawdown of that loan account. Separate loans must be
used to purchase shares in different companies or different classes
of shares in the same company.
Current Interest Rate
The current interest rate for Bell Potter Super Lending is 6.95%
p.a.
Capital Protected Loans
Because Super Lending is limited recourse the ATO may regard it
as a Capital Protected Loan. Information regarding the treatment of
interest on capital protected loans is provided at www.ato.gov.au; search
for "capital protected loans". In brief, interest deductibility
where loans are regarded as Capital Protected is limited to a
benchmark, being the RBA standard variable housing interest (5.20%
as at Jan 2018) rate plus 1%. You should seek advice from your tax
professional. The current benchmark interest rate is available in
table F5 at www.rba.gov.au/statistics/tables/index.html.
Benefits
We offer a competitive interest rate with borrowing across a
range of Approved Securities.
| Benefit |
Description |
|
Increase the size of your investments
|
|
|
Dividends and franking credits
|
|
|
Diversification
|
|
|
Invest tax effectively
|
|
|
Ownership
|
|
|
Limited Recourse
|
-
Our Super Lending product is limited recourse. It is still
subject to margin calls (as in standard margin lending). In the
event a margin call is not fully restored, the Lender has recourse
to the assets held as collateral for the loan account - and not to
any other assets of the SMSF, nor to other assets of the
trustee
|
Risks
Margin lending also has its risks. While a geared investment can
multiply your returns, it also has the potential to multiply your
losses.
| Risk |
Description |
|
Fall in the value of your
portfolio
|
- If your portfolio falls below a certain value - known as the
loan-to-value ratio (LVR) - you could face a margin call. You could
be required to add more collateral to your loan or to sell down
stock to cover the shortfall in value.
|
|
Interest rate
increases
|
- A rise in interest rates may mean that dividend receipts will
cover less of the financing costs.
|
|
Legal
|
- Laws may change and this may adversely affect your
position.
|
Suitability
Super Lending may not be suitable for every SMSF and should be
used as part of a considered strategy. A Bell Potter investment
Adviser can help you to work out if Super Lending is suitable for
you.
As part of the application process you will need to complete a
Suitability Statement, which asks questions about the position of
your SMSF.
Find out more
- Click
here to find an experienced Adviser in your area.
- To apply for a Super Lending Facility contact your Adviser or
call 1800 061 327
- For more details about the Bell Cash Trust
click here
Key Documents
Super Lending
Flyer
*Last updated 14/02/18